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Sabra Express | Jordan Gate

Israel to Advance Joint Industrial Zone with Jordan

Lahav Harkov, Jerusalem Post, July 31st, 2022


Recap:

Israel will accelerate the Jordan Gate project, a shared industrial zone with Jordan. Prime Minister Yair Lapid and Jordanian King Abdullah II finalized plans during a meeting in Amman last week.


The Context:

· Israel and Jordan signed a peace treaty in 1994, ending decades of hostility, though economic cooperation has remained limited. The idea of a joint industrial zone was first raised during peace talks.

· Over the years, Jordan Gate has seen several false starts [1] but will now move forward at a cost of $59 million. The project will include Israeli and Jordanian factories on the Jordanian side and a logistics base on the Israeli side for transferring goods from the Mediterranean to the landlocked kingdom [2]. The Israeli government will invest $2.9 million in a border terminal, creating 10,000 new Jordanian jobs [3].

· While this is the first-ever joint infrastructure project between Israel and Jordan, several Arab states have advanced economic and security agreements with Israel in recent years. In May 2022, Israel signed a free-trade agreement with the United Arab Emirates (UAE) and in 2021, trade between Egypt and Israel reached $330 million, a major driver being a program that allows products jointly manufactured by Egypt and Israel duty-free entry into the US [4].


Conversation Points:

· Why might Israel be less keen than Jordan on jumpstarting a joint infrastructure project?

· What benefits will each side see from Jordan Gate?

· Why did interim Prime Minister Lapid advance plans for Jordan Gate at this juncture infrastructure project now?


Notes:

1. Israel to Expedite Construction of Joint Industrial Zone With Jordan, Jonathan Lis, Haaretz, August 2nd 2022

2. Israel and Jordan advance plans to complete joint industrial park, Al Jazeera, August 2nd 2022

3. Israel to Expedite Construction of Joint Industrial Zone With Jordan, Jonathan Lis, Haaretz, August 2nd 2022

4. Israel and Jordan advance plans to complete joint industrial park, Al Jazeera, August 2nd 2022














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